When can I afford to retire? How long will my money last?
When consulting with my clients, many of them say they would like to reduce their working hours and pursue their personal interests sooner rather than later.
Because they don’t want to rely solely on their full-time employment income.
Therefore they must generate enough passive income from their investment portfolio to replace their employment income.
Generally speaking, retirement can last for 30 years or more, depending on when you retire and how long you live.
More often than not, people also underestimate how long they’re likely to live and therefore simultaneously underestimate how long their money will last.
So I thought I’d break down some of the facts.
There is a 50% chance that a member of a couple aged 60 will live past the age of 90.
And the current life expectancy for men is roughly around 84 years old, and for women, it’s 87 years old.
At the end of the day, the longer your retirement, the longer your retirement income needs to last.
If you have already secure income for the duration of your retirement, then this is not an issue.
If not, you need to make sure your money doesn’t run out before you do.
#investing #money #personalfinance #executivesandmanagement
